What Are the Variables in the Black-Scholes Option Pricing Model

question 20

Essay

What are the variables in the Black-Scholes option pricing model? How is each related to the price of the call option?

---

Definitions:

Undermine Partnership

Refers to actions or situations that weaken or damage the trust, collaboration, and effectiveness between partners in a business partnership.

Competes

Refers to the action of taking part in an event or contest with the aim to win against others.

Keirestu

A network of Japanese companies organized around a bank or a major manufacturing company, known for their close interrelations and support.

Multinational Companies

Corporations that operate and have assets and facilities in several countries outside of their headquarters' home country, participating in global trade and economy.